2-6 IAT Apples and wine
Michael Stolp is Vice President – Market Research and Development for Northwest Farm Credit Services and I get together once a quarter to hear what’s happening in ag as in apples and wine:
Apples -- The outlook for the Northwest apple industry is tempered from last season. For 2013/2014, the second largest crop in Northwest history is matched with a rebound in the North American apple crop. Increased supplies are weighing on markets. Additionally, Northwest apples are experiencing high cullage due to bitter pit and other internal condition issues. Affected fruit is not acceptable in the fresh market, which is impacting returns for both growers and packers. Apple prices, while generally profitable, have been pressured lower. Prices are expected to firm in the first quarter of 2014 and stay strong through the marketing season.
Wine/Vineyard -- The outlook is positive for Northwest wineries and vineyards. An informal poll of select Northwest FCS customers reveals aggregate wine sales up 4 percent in 2013. Worldwide wine consumption continues to increase, with leading growth markets including the United States, China and United Kingdom. China’s wine consumption has doubled twice in the past five years and is projected to nearly double by 2016, surpassing U.S. wine consumption. Supply and demand are expected to be balanced moving forward, matching improved global production and rising wine inventories with declining growth in vineyard acreage and increasing demand.
